Saturday, 24 July 2021

Minority Shareholders Watchdog Group. Wonder Where You ARE


by D.A.M.A, the Portuguese  pop group who has a tendency  to  switch between their mother tongue and English.

Lyrics, atleast the  English part goes something like this;

I'm gonna catch a cold
from the ice
inside my soul
Wonder where you are

Minority  Shareholders  Watchdog Group, where are YOU?  Aren't  you supposed  to be the think-tank and resource centre for minority interest and corporate governance matters in Malaysia.

Please show yourself or will you only appear once the damage is done. 

Do tell us hypothetically, is it  good corporate governance  from the eye of  minority  shareholders, if a third party is given a concession  to operate  the Subang Airport. Do take into account the following :, 

1.  From out of the blue a rival will be created  to compete  with  Malaysia Airports,. Compete for business as well as compete for investors attention  in the capital markets.

2. Overnight, Malaysia Airports,  which operates 39  airports in the country will lose 12.5 per cent of the profitable airports under its control.

Basically  there are less than 8  airports in the country  which are profitable, and Malaysia Airports uses part of this profit to manage  some 30 airports in the country which are losing  money.

3. Malaysia Airports will also lose some eight  routes that Subang Airport manages.   Some 30 airports in Malaysia  serve less than 8 routes.

4 . Considering that the Subang  Airport , is and have the potential to earn non capital intensive income,  which analyst term as non aeronautical revenue.  READ; Airport International Council World says non-aeronautical revenues are the major sources of funds for airports to invest in infrastructure and service. Report states 39.9 per cent non-aeronautical revenue ,? what can minorities do to protect their interest?

5. Is  non aeronautical revenue, similar to RENT SEEKERS,  considering retail  concessions  make up the largest  source of non-aeronautical revenue for airports at 30.2 per cent. Car parking revenue and property revenue/rent are the second and third largest sources of non-aeronautical revenues at 20.1 per cent and 15.0 per cent respectively..

6. Let us  not go into possibilities  or probabilities  of thr  income that may or may not be realized once Subang Airport is given a face  lift . Let us only stick to the facts. 

Is it not factually, correct to state by taking Subang Airport away from Malaysia Airports,  effectively it will  lead to  Malaysia Airports  paying an EXTRA RM60 million a year to finance its debts,

Do tell us Minority Shareholders  Watchdog Group,  what do you suggest minority shareholders do, if they feel that this entire exercise smells like rotten governance.

 Got  any chance for minorities and rebel shareholders to take any important individuals to court  to prevent, this butcher of Malaysia  Airports resources. 

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